The Hindu Business Line : `Erode' turmeric enters NMCE futures list

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Delivery centre: Central Warehouse Corporation warehouse, Erode
Contracts to open on 10th day of the month.
Compulsory delivery contract to ensure 3,000-t limit for clients, 9,000-t for members.
India's turmeric exports hover around 35,000 t.

Ahmedabad June 7 National Multi-Commodity Exchange (NMCE) is scheduled to launch futures trading in turmeric of the `Erode' variety in four series - to expire in August, September, October and November respectively this year.

As per the approval of the regulator, Forward Markets Commission (FMC), contracts will open on the 10th day of the month or the previous working day in case 10th happens to be a non-trading day.

Squaring up of positions will be permitted between 17th and 20th of the delivery month as the contracts expire on 20th of respective month. No fresh positions will be allowed during these days.

And, if the 20th day of the delivery month happens to be a holiday, delivery will be due the previous day, the Exchange said here in a release on Thursday.

The Central Warehouse Corporation (CWC) warehouse at Erode (Basis) is the delivery centre. Sellers can tender warehouse receipt for settlement at the closing price of the previous day. The compulsory delivery contract would ensure the limit at 3,000 tonnes for clients and 9,000 tonnes for members.

The trading unit is 10 tonnes. However, the price is quoted in rupees per quintal (100 kg), ex-CWC Erode warehouse. The daily price limit will be 4 per cent, which might be extended by 2 per cent on either side in case it touches the limit, but no trade would be permitted beyond 6 per cent on either side of the previous day's closing price.

Specifications

India produces about five-lakh tonnes of turmeric annually. Andhra Pradesh and Tamil Nadu are major producing States and the `Erode' variety has a large share in the region.

India alone contributes to 80 per cent of global production and is also the largest consumer. The country's exports hover around 35,000 tonnes. Turmeric finds medicinal use for value-addition.

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